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A country's relative trade performance is mainly determined by two (connected) factors: its exchange rate and its growth rate in relation to those of its trading partners.
The relative "trade space" for U.S.-bound containerized shipments is delineated via reverse spatial interaction modeling.
Another way to take account of relative trade costs, which does not have this disadvantage, is the random effects model.
In the estimation of the trade model we also take into account the influence of relative trade resistance between countries instead of absolute resistance (in line with trade theory) by estimating a random effects model (see "Accounting for relative trade cost" subsection).
In the random effects model we do not have to exclude destination (or origin) GDPs, in contrast to the fixed effects model where this is necessary because of the correlation between destination-specific fixed effects and GDP per destination (see "Accounting for relative trade cost" subsection).
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On the SEC study of relative trading costs, he notes that, in the few cases where there is head-to-head competition between his exchange and the NYSE (ie, for large-capital stocks), Nasdaq actually came out cheaper.
The ROC curve depicts relative trade-offs between sensitivity (benefits) and 1-specificity (costs).
It is extremely efficient measure as it provides visualization of relative trade-offs between true positives and false positives.
Watershed managers and other stakeholders could use this approach to assess the relative trade-offs of alternative stormwater BMP configurations.
On the other hand, the ROC curves, are very useful for providing a visual representation of the relative trade-offs between the true positives and false positives of classification in regard to data distributions.
One approach would be to extend the confusion matrix approach to differing threshold values, and, for each threshold, plot the resulting receiver operating characteristics (ROC) graph depicting the relative trade-offs between benefits (true positives) and costs (false positives) (Fawcett 2006).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com